Advertising
CTR Calculator
Click-through rate, and what a change to it does to everything downstream.
The formula
Click-through rate is clicks divided by impressions, as a percentage. 1,440 clicks from 120,000 impressions is 1.2%.
CTR is the cheapest lever you have
On any impression-priced channel, cost per click is CPM ÷ 1,000 ÷ CTR. Doubling click-through rate halves cost per click — and halves cost per customer with it, since conversion rate has not changed.
That is a bigger effect than most bid changes, and it comes from creative rather than from spend. The result below shows what a lift to 1.5x and 2x your current rate would do.
A high CTR is not automatically good
Clickbait raises click-through rate and lowers conversion rate, and the two can cancel out completely — more traffic, the same number of customers, and a larger bill. Watch CTR and conversion rate together; a rise in one paired with a fall in the other is not progress.
Note also that platforms count impressions differently. Comparing a CTR from one network against a benchmark from another is comparing two different denominators.